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Calpers Said to Buy 345 NYC Apartments for $400 Million

The California Public Employees’ Retirement System bought 345 apartments in two adjacent Manhattan towers from a partnership including Carlyle Group LP (CG), gaining rentals in New York as lease rates approach a peak.

The purchase includes 136 units in the Aldyn on Riverside Boulevard and the 209-unit Ashley on West 63rd Street, HFF Inc. (HF), the broker on the sale, said in an e-mailed statement, which didn’t include the transaction’s terms. Calpers, as the Sacramento-based fund is known, made the purchase through Boston-based GID Investment Advisers LLC, the pension’s real estate manager for residential transactions.

The price was about $400 million, according to a person with knowledge of the deal, who asked not to be named because the details are private. On a per-unit basis, it was the most expensive deal for more than 100 units on the Upper West Side since the 2007 purchase of the Apthorp, according to data from New York-based research firm Real Capital Analytics Inc. (APRTMHPU)

Manhattan apartment rents rose in March at the fastest pace in six months as limited for-sale inventory fueled competition among tenants. The median monthly rent climbed 6.7 percent from a year earlier to $3,195, while new-lease signings jumped 10 percent, according to a report by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. The vacancy rate dropped to a two-year low of 1.46 percent.

Rents will probably surpass the 2006 peak of $3,265 this year, according to Jonathan Miller, president of New York-based Miller Samuel.

Brad Pacheco, a Calpers spokesman, didn’t respond to calls and e-mails requesting comment on the transaction, which was reported yesterday by Real Estate Alert.Randall Whitestone, a spokesman for Washington-based Carlyle, declined to comment.

Apartment Rents

The Aldyn and the Ashley, located a block east of the Hudson River, were built by Extell Development Co. in 2010. The Aldyn includes condos as well as rentals.

Advertised monthly rents for available apartments at the Aldyn range from $3,850 for a one-bedroom to $13,850 for a three-bedroom unit, according to StreetEasy.com, a property listings website. Available units at the Ashley range from $3,100 for a studio to $7,795 for a two-bedroom.

Calpers’s purchase also included a 230-space garage and 52,000 square feet (4,800 square meters) of retail space, according to the person.

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